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Old 11-16-2013, 01:00 PM   #21
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Originally Posted by RunningBum View Post
I think what growing_older is saying is that say you all of the 401K deferred money ($34K) would have all been taxed at 25%. In retirement, perhaps you won't be right at the 15/25% edge when you pull the money out, so perhaps half of it will be taxed at 15% and half at 25%.
Okay, that makes sense. Thanks.

Originally Posted by RunningBum View Post
I hear ya...I plan and plan and plan, and then something changes, or I find an error in a formula or find out I got hit with AMT and have to recharacterize part of my Roth conversion. I used to get upset when those things happen, but now I just learn and adjust, and if things change and make my decision wrong I just write it off to be like reallocating my AA just before a market swing the wrong way.

Even the seemingly obvious prediction that future taxes will be at least the same if not higher may not hold true if a VAT is enacted, but I'm not going to plan for a VAT and reduced income taxes.
Agreed. We could also wonder if congress will someday decide to tax part of Roth IRAs (like they did with Social Security), but we can't plan around that either!

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